Legal acquisitions and the transfer of liabilities. Thread poster: Therrien
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Therrien 
Canada
Local time: 04:06
English to French
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Long story short:
Company X owed 1,000$ to me, a year late in payment.
It appeared the company was going under, after visiting the offices and so forth.
Multinational company Y acquired X, and issued an email (to all unpaid translators, I think) saying ''we're paying all providers from this month to that month, but nothing else''. My invoice happened to fall a month prior to that stated period. I didn't get paid.
As company X was going under, I... See more Long story short:
Company X owed 1,000$ to me, a year late in payment.
It appeared the company was going under, after visiting the offices and so forth.
Multinational company Y acquired X, and issued an email (to all unpaid translators, I think) saying ''we're paying all providers from this month to that month, but nothing else''. My invoice happened to fall a month prior to that stated period. I didn't get paid.
As company X was going under, I'm guessing there was very little operations during that stated period and that the memorandum was for PR purposes only; no one's getting paid.
Company Y's accoutant simply said something on the order of : ''Your bill is the responsibility of old company, and they're gone. Can't help you.''
It appears to me, Big Company Y acquired X's assets (mailing lists, clients, etc.) and tries to sweep the liabilities (ordinary creditors such as I) under the rug.
My understanding of law, though limited, is that if a company acquires another, both the assets and liabilities are acquired. You can't have only the assets. It was clearly written Company X was acquired and I saved all this information.
There seems to be no recourse for a little guy such as I, other than to perhaps take all this saved documentation and post it here, exposing their unethical business practice. Though I don't know how effective that would be or how ethical that would be from my end. Being a Canadian, it doesn't look very worthwhile to take legal action for this sum against an american company.
Best:
Alex
[Edited at 2012-03-21 05:39 GMT] ▲ Collapse
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Therrien wrote:
Multinational company Y acquired X, and issued an email (to all unpaid translators, I think) saying ''we're paying all providers from this month to that month, but nothing else''. My invoice happened to fall a month prior to that stated period. I didn't get paid.
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My understanding of law, though limited, is that if a company acquires another, both the assets and liabilities are acquired. You can't have only the assets. It was clearly written Company X was acquired and I saved all this information.
I think that is not only unethical but also illegal. I see clear grounds for legal action. They are probably trying to lure translators into resigning themselves to be paid only part of their invoices and cound their blessings, but clearly when you acquire a company you acquire all the assets and all the liabilities.
| | | | David Wright
Austria
Local time: 12:06
German to English
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| Two aspects of every legal claim | Mar 21, 2012 |
Do you have a claim? Yes, you most probably do. What the acquiting company is trying to do does not comply with the requirements of the law. It cannot acquire the company and argue that it is not liable for its debts.
Can you enforce your claim? Much more difficult given that they are in the US and you in Canada. If you are confident of your position, you could get a US lawyer to handle the matter; your debtor would be liable for his costs. In your situation I would send a letter saying th... See more Do you have a claim? Yes, you most probably do. What the acquiting company is trying to do does not comply with the requirements of the law. It cannot acquire the company and argue that it is not liable for its debts.
Can you enforce your claim? Much more difficult given that they are in the US and you in Canada. If you are confident of your position, you could get a US lawyer to handle the matter; your debtor would be liable for his costs. In your situation I would send a letter saying thatthis is what you plan to do, which may have an effect. If not, you would then have to decide on whetehr the risk is worth it.
(Third aspect of course: Do you have legal insurance? That would solve your problem at a stroke, since the insurer would pick up the tab) ▲ Collapse
| | | | | Failing companies and transfers of assets | Mar 21, 2012 |
I think it is difficult to make an assessment without knowing the insolvency law of the particular US State in which the company which owed you money was registered.
For example, under the law of England and Wales, companies which are failing can enter administration and (in very simple terms) the assets may be sold without the liabilities necessarily transferring.
I am not saying that this has happened here. However, the statement that company X was going under could m... See more I think it is difficult to make an assessment without knowing the insolvency law of the particular US State in which the company which owed you money was registered.
For example, under the law of England and Wales, companies which are failing can enter administration and (in very simple terms) the assets may be sold without the liabilities necessarily transferring.
I am not saying that this has happened here. However, the statement that company X was going under could mean that it had entered administration or a similar procedure under US law.
For a competent answer to the question, I suggest you consult a lawyer.
HTH Paul ▲ Collapse
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Alex Lago
Spain
Local time: 12:06
English to Spanish
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| Legal advice | Mar 22, 2012 |
You need a lawyer and ideally a lawyer located in the town where the company is located as you probably don't have one contact your lawyer, they may have some suggestions or may even be part of an "association" which can offer you services in other countries.
Another option would be to contact a debt collection agency.
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